Selling a Restaurant: Preparing for the Sale

Selling a restaurant is similar to cooking: For the best results, follow a proven recipe.

The French phrase mise en place, “Putting everything in its place,” is just as relevant when selling a restaurant as it is in your kitchen. Careful preparation and order are key to a smooth transaction.

In this first stage of the sales process, you’ll:

Complete a Seller’s Disclosure Statement

List your assets

Review your lease for important clauses that could impact your sale

Gather and prepare all vital documents

Establish a confidential way for buyers to contact you

This is the most time-intensive part of selling a restaurant, but following these steps now will save you a lot of time later. By the end of this section, you’ll have your documents prepared and you’ll be ready to begin the search for a buyer.

How to determine effective rent for restaurant leases

What is effective rent?

Effective rent is a term used to describe the actual rent paid for restaurant leases after factoring in concessions received by a tenant or paid by a landlord.

For example as a tenant you may receive free rent and a tenant improvement allowance. In addition, the landlord may be required to perform work to the building prior to delivering possession of the premises.

Why is knowing effective rent for restaurant leases important?

Understanding and calculating the effective rent will help you understand both the actual cost of your restaurant’s lease over the lease term, as well as help you understand how the landlord is analyzing the deal from their side of the table.